Atlanta, GA (PRWEB) September 12, 2014
Lowell McAdam, CEO of Verizon Communications said they would launch an Internet based television service in the first half of next year in a move which is intended to transform the traditional cable TV and satellite TV industry, says FoxBusiness, Sept 11.
Industry analyst Jeff Kagan offers comment.
“Verizon FiOS, AT&T Uverse and CenturyLink Prism are the services which these companies use to deliver television in competition with cable television and satellite TV. To date these have been successful and are taking market share away from the traditional cable television space.” Says Wireless Analyst Kagan.
“While, these competitors in the television space are successful, they are also limited based on their geographic footprint. They must think of new ways to expand beyond their own region.” Says Technology analyst Kagan.
“That’s why AT&T is trying to acquire DirecTV. They want to expand their television footprint to a national audience. That is why Verizon Wireless now wants to start offering Netflix like services on a national basis over their wireless devices. This is a way for the baby bells to continue to expand and to grow.” Says Tech analyst Kagan.
The television industry is in transition. Traditional cable television companies are losing business to new competitors like the telephone companies. That is why the cable television industry is trying to put an end to users being able to get free TV over their antenna through new legislation.
Netflix is a small company that mailed DVD movies to it’s customers over the last several years, and now is suddenly changing into a television powerhouse. They deliver movies over Internet download. They account for roughly one third of all Internet traffic each evening. They are now moving into producing their own programming.
“The television industry is going through a massive transformation and reinvention. That means there is enormous new opportunity in a wide variety of ways. We hear of more new thinking and new ideas every year. That is healthy for a growing and changing industry.” Says Kagan.
“Verizon and AT&T are both growing in new ways. That is good for them, for the industry, for customers and for investors. Companies like Verizon and AT&T will continue to bring new ideas for growth to the marketplace in coming years as the industry changes.” Says Analyst Kagan.
“All of this innovation will continue to put pressure on the traditional cable television industry which must transform itself as well. Rather than try and stop people from getting free TV over their antenna, cable television should be focused on innovation in order to come back.” Says Kagan.
“This is the beginning of a new wave of innovation and growth in this industry. It’s all about bringing new things to television using the Internet, wireless and the cloud.” Says Kagan.
“We have to realize that we don’t just watch television at home any longer. Going forward we can watch it on our computers, tablets and smartphones, from our home or anywhere in the United States. That completely flips the traditional television model on it’s head.” Says Kagan.
About Jeff Kagan
Jeff Kagan is an industry analyst, consultant, columnist, author, speaker and futurist. He shares his opinion and views in many different ways over 25 years. His goal is to help you better understand our changing world, technology, industry and competition.
He is regularly quoted hundreds of times every year by the media. He writes two weekly columns and a daily press release on companies, technologies, competition and the changing industry.
He offers comment on wireless, telecom, Internet, cable television, IPTV and other tech news stories.
Kagan is known as a Technology Analyst, Tech Analyst, Wireless Analyst, Smartphone Analyst, Telecom Analyst, Telecom Industry Analyst and Principal Analyst.
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Full Disclosure: Jeff Kagan is an independent industry analyst. He offers comment to the media on breaking news, announcements, technologies and the changing marketplace. He also writes columns and press releases offering comment, and is an author and speaker. Kagan earns a living as a consultant, analyst, speaker and author.
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